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Apple cancelled the additional production of iPhone XR due to poor demand

Bennie Parsons |Tuesday, November 06, 2018

The iPhone XR is reportedly not selling as well as Apple and analysts predicted

The report says Apple informed its primary suppliers - Foxconn and Pegatron - to halt plans for additional production lines for the iPhone XR.

"For the Foxconn side, it first prepared almost 60 assembly lines for Apple's XR model, but recently uses only around 45 production lines as its top customer said it does not need to manufacture that many by now", a source told the paper. "The utilization for the XR production is not reaching its maximum capacity now", Nikkei's source stated. Apple has ordered 5 million more iPhone 8 and 8 Plus units this quarter, bringing the total to 25 million.

Before we dive into this, I want to recommend caution where Apple and iPhones are concerned.

In September, Apple launched three new iPhones, the premium iPhone XS and iPhone XS Max that start at Rs 99,900 and go all the way up to Rs 144,900. The phone does appear to have ramped more slowly than some of Apple's previous flagships, but it became the bestselling phone through much of the first half of 2018.

Tied to this is the unexpected news that demand of the previous-generation iPhone 8, which Apple still sells, has jumped. Given the disparity between what we saw being said about the iPhone X a year ago and its 12-month performance, some caution is clearly warranted.

While Apple had great expectations for the iPhone XR, it's now ordering more iPhone 8 and 8 Plus models from its partners. Apple previously told Wistron to stand by for rush orders, but now the supplier will not receive any orders for the holiday season. Foxconn and Pegatron declined to comment on specific customers or products.

Apple iPhone XS review - how does the experience compare to Android? This has led the company to cancel a so called "production boost" for the model.

Apple shares fell almost 4 per cent on Monday after the report from the Nikkei financial daily, which fuelled concerns that the iPhone XR - the cheapest of three iPhones unveiled in September - was facing weak demand just days after it hit shelves.